52-Week Drawdown
52-week drawdown measures how far a stock has fallen from its 52-week high. A -20% drawdown means the stock is 20% below its peak.
The Formula
Drawdown = ((Current Price - 52-Week High) ÷ 52-Week High) × 100
Why Dividend Investors Care
When quality dividend stocks experience significant drawdowns without cutting their dividend, it creates buying opportunities:
- Same dividend at a lower price = higher yield
- Quality companies often recover
- Dollar-cost averaging works in your favor
How Dividend.Direct Uses It
Drawdown contributes to our Value Score. Stocks with >20% drawdown and maintained dividends are flagged as potential opportunities.
See It in Action
Drawdown data helps identify potential value plays when quality stocks dip in price.